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Mike Novogratz, the founder, and CEO of New York-based crypto investment outfit Galaxy Digital, recently shared his take on prime investments amid the turmoil in the traditional banking industry. Novogratz’s comments came during an interview with CNBC’S Squawk Box.
"The oil market is telling you we're heading into a recession. Powell should pause and will be cutting rates sooner than we think," says @novogratz. "If there was ever a time to be in #Bitcoin and #crypto, this is why it was created." pic.twitter.com/5gIvq1hWBO
— Squawk Box (@SquawkCNBC) March 15, 2023
According to Mike Novogratz, the United States is heading toward a credit crunch, and the best investment right now is Bitcoin, gold, and silver. The Galaxy Digital CEO’s support for the flagship crypto along with precious metals is based on the current sentiment among lenders in the U.S. and around the Globe.
“If there was ever a time to be in Bitcoin and crypto, this is why it was created, in that governments print too much money whenever the pain gets too great, and we’re seeing that,” Mike Novogratz told CNBC’s Andrew Ross Sorkin.
The Galaxy Digital founder believes that banks are going to start employing a strategy where they will lend fewer funds in a bid to rebuild their capital. According to Novogratz, this will induce a credit crunch in the coming days. To support his claims he cited the current predicament of the commodities market, which is already heading toward a recession.
Mike Novogratz also predicted a reversal in the interest rate policy of the United States Federal Reserve, as the financial regulator looks to maintain its credibility by hiking interest rates. Bitcoin has performed rather well amid the chaos in the banking industry. Its price has gone up by as much as 18%, reaching nearly $26,000 on 14 March.